By The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the slow reduction in petrol prices despite a significant decline in global crude oil prices, warning petroleum operators against taking advantage of consumers.
The commission said its ongoing monitoring of the downstream petroleum sector showed that reductions in pump prices have not matched the fall in international crude prices, raising concerns over possible unfair market practices.
According to the FCCPC, a review of gantry prices from local refiners, marketers, depot operators and retail outlets revealed only slight adjustments despite crude oil prices dropping sharply in the global market.
The commission’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said deregulation of the petroleum sector does not remove the responsibility of businesses to operate fairly.
Bello stated that the agency’s role was not to fix petroleum prices but to ensure that competition works effectively and consumers are protected from exploitative practices.
“The commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices.” He said.
The FCCPC boss questioned why petrol prices rise immediately when crude prices increase but fail to reduce at the same speed when international oil prices decline.
“While dealers often respond swiftly by increasing pump prices whenever crude prices rise, it is concerning that consumers are taking too long to benefit when crude prices fall. Competitive markets must work fairly in both directions.” He added.
The commission noted that crude prices recently fell to about $73 per barrel following improved stability in global oil markets after a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz. This represents a major decline from the $120 per barrel peak recorded in April.
Despite the fall, petrol prices across Nigeria remain around ₦1,200 per litre on average, while some local refiners’ gantry prices are between ₦1,025 and ₦1,075.
The FCCPC acknowledged that factors such as refining costs, foreign exchange fluctuations, logistics, financing and distribution expenses affect domestic petroleum prices. However, it maintained that market competition should allow consumers to benefit from reduced costs.
Bello further warned that the commission would investigate any evidence of practices capable of undermining competition or exploiting Nigerians.
“Where credible evidence indicates conduct that undermines competition, exploits consumers or violates the Federal Competition and Consumer Protection Act, the commission will investigate and take appropriate enforcement action,” he said.
The commission urged Nigerians to report suspected unfair pricing practices and other anti-competitive activities through its official complaint channels.
